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Print Print edition: 2010-12-29

SNGPL violating gas distribution formula

Published Updated

The Sui Northern Gas Pipeline (SNGPL) is reportedly violating the gas distribution formula, approved by the federal government, which has resulted in countrywide protest against gas load shedding, affecting all sectors. According to gas distribution formula approved by federal government, domestic consumers are given top priority regarding provision of gas under gas load management plan.
CNG and power sectors fall in second priority list; the commercial consumers in third place, followed by captive powers. Cement, fertiliser and textile sectors are at the bottom of the totem pole in terms of priority. Moreover, SNGPL is bound to provide gas to cement, fertiliser and textile sectors for nine months, according to agreements.
"But the SNGPL is itself violating agreements inked with cement, fertiliser and textile sectors by providing gas for over nine months," sources said, adding that it has resulted in putting the burden on other consumers who are on a higher priority. Gas load shedding resulted in countrywide protests across Punjab on Monday, as people thronged the streets to register their protest against gas load shedding. People facing gas shortages blamed government''s mismanagement for their problems.

Copyright Business Recorder, 2010

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